How to choose a construction finance specialist: Holden CAPITAL

How to choose a construction finance specialist: Holden CAPITAL
How to choose a construction finance specialist: Holden CAPITAL


How to choose a construction finance specialist: Holden CAPITAL


How to choose a construction finance specialist

1.     Is your broker actually a specialist?

If they ask you about your business finance needs, refinancing your house or your boat loan then there is a pretty good chance they are an all-rounder. This is great for them, they can ride out the slow times by re-setting your life insurance, but when you need a specialist you want the best because the difference can be expensive – for you! Construction finance is a competitive and complex area and getting it wrong or not getting the best terms can be a costly exercise for a developer when things don’t go according to plan. You wouldn’t hire a handy man to build your new house, so why hire an all-rounder to negotiate your construction finance?… Deal with someone who’s livelihood depends on specifically doing “Construction Finance” and doing it well.

2.     Do they have the respect of the banks?

Most brokers run through an aggregator, which means their dialogue with the bank is muffled via the conduit process they have to go through. The 3 large aggregator firms in Australia are partially owned by a major bank, and while they vow there is no bias on which offer gets pushed to the borrower, it wouldn’t be like a money making bank to let its brokers push competing banks product. Directly accredited brokers (like HoldenCAPITAL), deal directly with the Bank’s key decision makers and are able to present the deal in the best possible light with an understanding of what those decision makers are looking for. Make sure your broker is not associated with an aggregator.

3.     Do they have access to all the appropriate lenders?

If you were paying someone to tender the market and get the best terms on your finance deal, wouldn’t you like to know they were impartial on which offer they tell you is best for you? In addition to being accredited with all the major and non-Bank lenders, HoldenCAPITAL looks at who can best service your project needs, creates competitive tension and then gives you the choice. Don’t settle for someone who looks at what’s in it for them in terms of their own relationships…ensure you are getting the best options for your business.

4.     What have they done lately?

Ask them for a catalogue of projects they have funded in the last 12 months. If they boast doing a large volume of deal but only 5 of them are construction loans and relatively small at that, you are dealing with a dabbler, not an expert. Also ask for references from clients who use them regularly. Repeat clients are the best referrals and you should ask to speak to them... Ask for results in both funded projects and happy clients.

5.     Are they a potential competitor to you?

When the market slows down some operators use the knowledge they gain over time to diversify and undertake their own projects. It is worth asking the question as to how many projects they are involved in as the principal developer rather than a consultant or passive equity partner. It would be good to know they aren’t sizing up your project as their own... Don’t get into bed with a competitor.

6.     Do they have the relevant expertise and resources? 

Many brokers are essentially a one-man band or a group of single operators sharing an office and resources. Very few have the technical skills and lending experience which as available to clients of HoldenCAPITAL. With over 100 years of collective experience in finance, joint ventures and project development, we have the experience, expertise and manpower to ensure that you get the right funding package for your project on the best terms available… Deal with experts who understand you project and business objectives and can deliver the results you deserve.

To find out more about which option best suits your next project, contact Dan Holden at HoldenCAPITAL on 0401 669 502 or visit HoldenCAPITAL here.

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